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Domtar sees 2018 earnings up after solid showing in pulp and paper

February 6, 2019 – Domtar Corporation has released its fourth-quarter and year-end results, seeing a spike in earnings after a solid showing in the pulp and paper sector.

For fiscal year 2018, net earnings amounted to $283 million ($4.48 per share) compared to a net loss of $258 million ($4.11 per share) for fiscal year 2017. The company had earnings before items of $291 million ($4.61 per share) for fiscal year 2018 compared to earnings before items of $163 million ($2.60 per share) for fiscal year 2017. Sales amounted to $5.5 billion for fiscal year 2018.

Domtar reported net earnings of $87 million ($1.38 per share) for the fourth quarter of 2018 compared to net earnings of $99 million ($1.57 per share) for the third quarter of 2018 and a net loss of $386 million ($6.16 per share) for the fourth quarter of 2017. Sales for the fourth quarter of 2018 were $1.4 billion. The company had earnings before items of $103 million ($1.63 per share) for the fourth quarter of 2018 compared to earnings before items of $92 million ($1.46 per share) for the third quarter of 2018 and earnings before items of $40 million ($0.64 per share) for the fourth quarter of 2017.

Commenting on the full-year results, John D. Williams, president and chief executive officer of Domtar said, “We had a strong finish to a great year where we significantly improved EBITDA and cash flow. Our solid performance enabled us to return cash to shareholders, manage our balance sheet to preserve financial flexibility and better position Domtar for sustainable, long-term growth.”

“The fourth quarter was one of our best in several years,” he continued. “Our results reflect a strong performance in pulp and paper as we benefited from solid business fundamentals, accelerating price realizations and improved productivity. I’m especially pleased with our cost performance in the quarter despite fibre availability issues at several of our facilities.”

Operating income was $133 million in the fourth quarter of 2018 compared to operating income of $114 million in the third quarter of 2018. Depreciation and amortization totaled $75 million in the fourth quarter of 2018.

Read the full Domtar finanical report.